Settlement - Part 24

Week Adjourned: 4.12.13 – Apple, Skechers, Path, Fisker

This week, the top class actions in the news are Apple, Skechers, Path and Fisker. Week Adjourned is your weekly wrap of class action lawsuits and settlements for the week ending April 12, 2013.

Top Class Action Lawsuits

No, the Path to Profit is not through Spam…as Path social media can now attest to. The mobile social network got hit with a potential class-action lawsuit this week for allegedly sending unsolicited text ads to people’s cell phones, in violation of the Telephone Consumer Protection Act (TCPA).

Filed in Illinois, by Kevin Sterk, the Path lawsuit alleges that Sterk received an unsolicited SMS message in March from Path. The message stated that someone else wanted to show Sterk photos on the service, and contained a link to a site where he could register to join. Sterk claims he never authorized Path to contact him via SMS. Further, the lawsuit alleges the company has sent similar text messages to “thousands” of other cell phone users.

“By making these unauthorized text message calls, [Path] has caused consumers actual harm, not only because consumers were subjected to the aggravation that necessarily accompanies the receipt of unauthorized text message calls, but also because consumers frequently have to pay their cell phone service providers for the receipt of such unauthorized text message calls,” the TCPA lawsuit states.

The Path class action lawsuit contends that these unsolicited messages violate the TCPA, which prohibits companies from using automated dialing services to send SMS messages without the recipients’ consent. The law provides for damages of $500 per incident. Sterk, who is seeking class-action status, is asking for monetary damages and an order prohibiting Path from sending unsolicited text messages.

I wish someone would come up with an app that would enable the average Joe to spam the spammers. Now, that could be fun!

Forewarned isn’t Forearmed at Fisker? The folks at Fisker are facing an employment class action lawsuit filed over allegations it failed to provide 60 days notice to employees who were part of recent mass layoffs. Those layoffs are allegedly in violation of US and California labor laws.

FYI—the US Worker Adjustment and Retraining Notification (WARN) Act, a federal law, stipulates that companies with over 100 employees must provide 60 days notice prior to laying off their employees. There is also a similar requirement in place under California state law.

The employment lawsuit against Fisker alleges the company failed to pay the employees their 60 days pay and benefits that they would have been received had they been provided their duly entitled 60-day notice. Further, the lawsuit claims Fisker failed to notify California’s state Employment Development Department of its layoff plans, as well as the local workforce investment board, as well as the top elected officials in Anaheim and Orange County.

Top Settlements

A bit Sketchy on Skechers? Well, it’s official, but not approved. Confused? Don’t be. Last September we reported that Skechers has agreed to a preliminary $40 million settlement of a consumer fraud class action brought by disgruntled customers who claim the company misrepresented the benefits of the “toning shoes.”

Entitled Grabowski v. Skechers U.S.A., Inc., No. 3:12-cv-00204 (W.D. Ky.), the lawsuit concerns claims that Skechers violated certain state laws and consumer protection statutes in connection with the marketing and sale of its toning shoes. Not surprisingly, Skechers denies those allegations.

It looks as if final approval may be at hand, as the fairness hearing was scheduled for mid-March 2013. This matters to you purchased eligible Skechers toning shoes from August 1, 2008, up to and including August 13, 2012 in the United States.

To find out more information and to download claims forms, visit: http://www.skecherssettlement.com/

Bad Apples, eh? This one is all over the wires today…Apple—the faltering god of all things techno—has reportedly agreed to a $53 million settlement in the class action lawsuit pending over alleged defective iPhones and iPod Touch.

The unfair business practices class action was originally filed against Apple in 2010, and centered around claims that the company failed to honor its warranty obligations by fixing or replacing defective devices.

According to a report by CNET, thousands of owners of the original iPhone, iPhone 3G, iPhone 3GS, or the first three generations of the iPod Touch who were unsuccessful in getting Apple to honor its warranty related to repairs and replacements, can submit claims in the suit. These devices carried one-year standard and two-year extended warranties.

The settlement has yet to be approved, and full details have not been made public. Wired is reporting that depending on how many people submit claims, individual payouts could be approximately $200. Stay tuned for more on this one.

Ok—that’s a wrap. See you at that bar…

Week Adjourned: 4.5.13 – H&R Block, JP Morgan Chase, Asbestos

Just in time to send in those tax returns, H&R Block is hit with a class action lawsuit. That leads off our weekly top class action lawsuit and settlement news for the week ending April 5, 2013.

Top Class Action Lawsuits

Just in Time for Taxes! Oops…talk about adding insult to injury…A consumer fraud class action lawsuit has been filed on behalf of individuals who allege that their tax refunds were delayed due a tax return error by H&R Block.

“These individuals trusted and paid H&R Block to file their tax returns accurately so they could receive their refunds as soon as possible,” said Jordan L. Chaikin, a partner with Parker Waichman LLP, one of the law firms representing the plaintiffs. “However, H&R Block has made an error that has delayed thousands of people from receiving their tax refunds on time. Furthermore, consumers paid this company under the promise of a 100 percent guarantee for their services, yet they have not been justly compensated for this error.”

According to the H&R Block lawsuit filing, the Defendants erroneously and negligently prepared Form 8863 included with 600,000 tax returns. As a result, the suit alleges, tax refunds have been delayed up to six weeks past when they would have been paid. The lawsuit alleges, among other things, that H&R Block has breached its contract. According to the allegations, H&R Block promised its customers a “100% Satisfaction Money Back Guarantee” which states that if the consumer is dissatisfied for any reason within 60 days, they are entitled to a refund for the full purchase price. Despite this promise, the lawsuit alleges, H&R Block has failed to offer compensation to the Plaintiffs or any putative class members for the error caused solely by the company and its subsidiaries.

The lawsuit points out that H&R Block has admitted to making an error on Form 8863 that has led to a delay in tax refunds. According to the Complaint, Form 8863 is used to claim tax credits for qualified expenses paid to post-secondary education institutions. According to the lawsuit’s allegations and a report in Kansas City Business Journal, H&R Block mistakenly left a mandatory field blank instead of answering “yes” or “no” for questions #22 through 26. The lawsuit alleges that the error had delayed tax returns of Plaintiffs and putative members beyond the 21 day turnaround represented by the Defendants.

The lawsuit was filed on March 29, 2013 in the U.S. District Court for the Northern District of Ohio, Eastern Division (Case No.1:13-cv-00698-CAB). H&R Block, Inc, HRB Tax Group, Inc. and HRB Technology LLC have been named as Defendants.

Property Appraisers at JP Morgan Chase are Chasing their Unpaid Overtime. California Appraisers in the commercial lending division of JP Morgan Chase have filed an unpaid overtime class and collective action lawsuit, seeking to recover millions of dollars in unpaid wages based on the financial services giant’s practice of misclassifying these employees as “exempt” from overtime pay, among other violations of California and federal law.

Chase’s “Production Appraisers” complete form valuations of commercial and multi-unit residential properties based on well-defined criteria, allowing Chase to issue loans and refinancing secured by the properties. Chase’s “Review Appraisers” then proofread the appraisals based on Chase’s criteria.

The lawsuit, filed in the Los Angeles-based U.S. District Court for the Central District of California, alleges that Appraisers have unlawfully been deprived of overtime pay and meal and rest period premiums, itemized wage statements and certain reimbursements required under California law. The Appraisers allege that they are subject to detailed standards and internal guidelines for the production and review of each appraisal, placing the Appraisers squarely outside of the so-called “white collar” exemptions to the Fair Labor Standards Act and California wage and hour protections.

The California overtime lawsuit, filed by Long Beach residents Kenneth Lee and Mark Thompson, seeks to represent approximately 150 appraisers, who were or are classed as Administrators. Go get’em!

Top Settlements

Another large asbestos lawsuit settlement to report this week. A verdict was reached in March in the case of Michael Sutherland, a former drywaller diagnosed with mesothelioma, a cancer caused by asbestos. The Los Angeles Superior Court jury that heard the case returned its an asbestos verdict awarding $26.6 million to Michael and his wife Suszi.

Mike testified that he worked as a drywaller in northern San Diego County from 1967, while he was still attending Madison High School, through 1993—with frequent breaks for extended surfing trips to Hawaii and Mexico. He worked at countless residential and commercial jobsites during the construction “boom” that occurred in north county in the 1970s, the same time that cancer-causing asbestos was used in many construction products including joint compound, fire-rated drywall, caulk, stucco, roofing mastic and asbestos cement pipe.

“With all the trades working on top of each other trying to finish one job and move on to the next, it was always dusty,” Mike recalled, “It wasn’t until I became a lead maintenance mechanic at UC San Diego and attended a class on job safety in 2003 that I learned that so many of the materials used on the jobs back then contained asbestos.”

The Sutherlands’ case (LASC case # BC486980) was filed on June 20, 2012. Over 30 defendants were named in the case. Settlements were reached with a number of defendants prior to trial. Stucco manufacturer, Highland Stucco and Lime Products, Inc., the sole remaining defendant at trial, argued that other companies and even Mr. Sutherland himself were responsible for his exposure to asbestos. But the jury ultimately assessed blame on Highland for its role in subjecting Mr. Sutherland and other members of the public to its dangerous products.

“I was surprised to learn at trial just how much asbestos was in stucco,” Mike stated, “even though I rarely worked hands-on with the stuff, I was exposed to dust when the bags were dumped into large mixers and when we had to scrape off areas of over-spray that came into the homes through windows and doors.”

Mike is grateful for the jury’s award and for the hard work of his legal team, but would gladly trade it for the return of his health. Prior to his diagnosis in May 2012, Mike enjoyed his job at UCSD and had no plans of retiring. He also continued to indulge his life-long passion for surfing, hitting the waves on the iconic surf breaks of north county San Diego two or more times a week.

Ok—that’s a wrap. See you at that bar…

Week Adjourned: 3.29.13 – Ford, RadioShack, Toyota & Ford (again!)

Check out the latest class action lawsuit news for the week ending March 29, 2013. Top class action news includes Ford, Toyota and RadioShack.

Top Class Action Lawsuits

Will Ford Follow in Toyota’s Footsteps? This week, consumers from 14 states filed a federal class action against Ford Motor Co. in connection with alleged defects in Ford’s vehicles causing and failing to prevent the unintended acceleration of those vehicles. Umm, remember that one? Toyota comes to mind…and they settled recently (more on that later).

Here’s the dirt: the plaintiffs contend that Ford vehicles equipped with an electronic throttle control system are vulnerable to sudden unintended acceleration events, and that Ford has admitted that some of its vehicles are in fact prone to such acceleration. Their complaint alleges that the Ford vehicles share a common design defect in lacking adequate fail-safe features, including a reliable brake-over-accelerator (BOA) system (also referred to as a “brake override system”). Such a system is designed to allow a driver to overcome unintended throttle opening by returning the throttle to idle when certain conditions are met, allowing a driver to mitigate unintended acceleration by depressing the brake.

The Ford lawsuit also claims that Ford owners have experienced unacceptable rates of sudden unintended acceleration (SUA), citing a report issued in October 2011 by the U.S. Department of Transportation Inspector General. Plaintiffs allege that Ford should have prevented the SUA incidents by including the brake-over-accelerator system or other fail-safe systems in its vehicles. They maintain that, while Ford began installing a BOA system on some of its North American cars beginning in 2010, the company has failed to remedy, or even warn drivers about the lack of a brake-over-accelerator system on its earlier vehicles.

The cars named in the complaint are:

Ford vehicles: 2005-2007 500; 2005-2009 Crown Victoria; 2005-2010 Econoline; 2007 2010 Edge; 2009-2010 Escape; 2005-2010 Escape HEV; 2005-2010 Expedition; 2004-2010 Explorer; 2007-2010 Explorer Sport Trac; 2004-2010 F-Series; 2009-2010 Flex; 2008-2010 Focus; 2005-2007 Freestyle; 2006-2010 Fusion; 2005-2010 Mustang; 2008-2010 Taurus; 2008-2009 Taurus X; 2002-2005 Thunderbird; and 2010 Transit Connect.

Lincoln vehicles: 2003-2006 LS; 2006-2008 Mark LT; 2009-2010 MKS; 2010 MKT; 2007-2010 MKX; 2006-2010 MKZ; 2005-2009 Town Car; and 2006-2010 Zephyr.

Mercury vehicles: 2002-2005 Cougar (XR7); 2005-2009 Grand Marquis; 2009-2010 Mariner; 2005-2010 Mariner HEV; 2006-2010 Milan; 2005-2007 Montego; 2004-2010 Mountaineer; and 2008-2010 Sable.

The potential class action was filed in U.S. District Court for the Southern District of West Virginia in Huntington. The plaintiffs, both individually and on behalf of all other class members, seek compensatory damages for the lost value of their cars, the difference between what they originally paid for their cars versus the actual value of their defective vehicles. Plaintiffs also seek injunctive relief, requesting that Ford fix the problem.

Shack Sacked for Tracking? RadioShack got hit with a potential class action this week…The lawsuit claims the electronics retailer secretly tracks the Internet browsing activities of website visitors and shares this private information with third parties. Well, if so, they’re certainly not the first to do that, and I’m betting they won’t be the last…

Short version, the Radio Shack class action was filed in Missouri, by plaintiff Stephanie Hanson who alleges she visited the RadioShack website numerous times during the past five years but was unaware that the company, together with its website operator, GSI Commerce Solutions Inc., had accessed Adobe Flash Player on her computer. Adobe Flash Player is software that enables the playing of sound and video on websites. By accessing this software, the defendants were able to plant tracking devices known as Location Shared Objects (LSOs) on her computer, the lawsuit claims.

The lawsuit, entitled, Hanson v. RadioShack Corp. et al., Case No. 13-cv-00536, U.S. District Court for the Eastern District of Missouri, seeks to represent a proposed class comprised of all Missouri residents who, within the past five years, had their computers illegally tampered with by RadioShack and GSI. Additionally, the lawsuit is seeking damages for alleged invasion of privacy by unreasonable intrusion, computer tampering, trespassing and more.

Top Settlements

It was a very busy week for settlements, and car manufacturers Ford and Toyota led the pack.

First up—Toyota. The Toyota sudden and unwanted acceleration lawsuit claims that certain Toyota, Scion and Lexus vehicles equipped with electronic throttle control systems (ETCS) are defective and can experience unintended acceleration. Yes, that old chestnut…

As a result, the Toyota lawsuit pursues claims for breach of warranties, unjust enrichment, and violations of various state consumer protection statutes. Toyota denies that it has violated any law, denies that it engaged in any and all wrongdoing, and denies that its ETCS is defective. The parties agreed to resolve these matters before these issues were decided by the Court.

Heads up—this settlement does not involve claims of personal injury or property damage.

If you are class member, you may be entitled to one or more of the following:

A cash payment for alleged loss upon certain disposition of a Subject Vehicle during the period from September 1, 2009 and December 31, 2010 or upon early lease termination following an alleged unintended acceleration event that you reported.

Installation of a brake override system (BOS) in certain Subject Vehicles at no charge; A cash payment if your Subject Vehicle is not a hybrid and is not eligible for a BOS; Participation in a Customer Support Program; and other settlement benefits.

For more information including class member options and filing dates visit: toyotaelsettlement.com

Then there’s Ford. They reached a proposed settlement in the pending Ford defective engine class action lawsuit. The background: On April 13, 2011, the Judicial Panel on Multidistrict Litigation created MDL No. 2223, In re: Navistar 6.0L Diesel Engine Products Liability Litigation, and transferred seven lawsuits involving similar claims to the Court for pretrial proceedings. Thirty-two additional lawsuits have since been transferred to the Court. The plaintiffs contend that the 6.0-liter diesel engine installed primarily in 2003 – 2007 heavy-duty Ford trucks and vans contain defects that result in poor performance and expensive repair bills. Plaintiffs assert a variety of legal claims against Ford based on the engine’s design, the marketing of the vehicles, and Ford’s repair practices. Plaintiffs seek to pursue their lawsuits (the “Litigation”) as a class action on behalf of other owners and lessees of model year 2003_2007 non-ambulance Ford vehicles equipped with a 6.0 liter diesel engine (the “Class”).

If you:

1. purchased or leased a model year 2003_2007 non-ambulance Ford vehicle in the United States equipped with a 6.0-liter PowerStroke diesel engine; and

2. the vehicle received one or more repairs covered by Ford_s New Vehicle Limited Warranty during its first five years in service or 100,000 miles, whichever came first, to a fuel injector; the EGR valve; the EGR cooler; the oil cooler; or the turbocharger; and

3. you had not, as of November 1, 2012, filed (and not voluntarily dismissed without prejudice) an individual lawsuit based on that engine;

You may be a member of a proposed Settlement Class and entitled to reimbursement for certain engine-related repair costs and deductibles.

If the Court approves the proposed Settlement, Ford will provide Class Members a means of obtaining reimbursement for certain engine-related repair costs and deductibles. All persons (or entities) who agree to accept these benefits will be barred from pursuing individual lawsuits against Ford and others based on the 6.0-liter engines in these vehicles.

For complete information on the pending settlement, your legal rights, and obtaining and filing forms, visit: http://www.dieselsettlement.com/Casedocuments.html

Ok—that’s a wrap. See you at that bar…and Happy Easter, Happy Passover, Happy belated Holi, etc…

Week Adjourned: 3.22.13 – John Hancock, Dialysis Centers, Ab Circle Pro

The weekly wrap on top class action lawsuits and settlements for the week ending March 22, 2013. Top class actions include John Hancock Insurance, DaVita Dialysis Centers and Ab Circle Pro.

Top Class Action Lawsuits

Do You Trust John Hancock Insurance?…The John Hancock ad campaigns center on “trust”, but after a bad faith insurance class action lawsuit was filed against John Hancock Life Insurance Company over allegations it fails to settle death benefits, that trust may be out the window for some.

This latest class action lawsuit, filed by Richard Feingold and entitled Richard Feingold v. John Hancock Life Insurance Company, Case No. 13-cv-10185, U.S. District Court Massachusetts, Boston, claims that John Hancock only paid him as a beneficiary of his late mother’s life insurance policy, four years after her death in 2006, when Feingold discovered she had the policy. Feingold alleges he found information on the Illinois treasurer’s website which showed he had unclaimed property owed to him from John Hancock through his late mother’s policy. Up until that point, Feingold was unaware, he claims, that his mother had a life insurance policy, or that he was owed death benefits. He subsequently contacted the insurer and was paid, however John Hancock refused to provide him with a copy of his late mother’s policy, or any explanation about the benefits he received.

The potential class action claims that John Hancock routinely checks the Social Security Administration’s master death list so it can halt payments to annuity holders who have become deceased; however the insurer fails to check the same database to see if a life insurance policy holder has died so the company can promptly pay beneficiaries. Essentially, the John Hancock class action lawsuit claims, the insurer uses the information solely for its own benefit.

FYI—John Hancock recently ponied up $13 million to settle allegations brought by six states that it didn’t work hard enough to pay life insurance benefits. Slow learners maybe? Um. Maybe not.

More on Granuflo Lawsuits. This has been all over the news recently. DaVita Healthcare, a national dialysis treatment provider that uses Granuflo and Naturalyte during hemodialysis, is facing four potential personal injury class action lawsuits.

The DaVita dialysis class actions allege the clinics should have known of the risks for serious adverse health effects associated with Granuflo and Naturalyte and acted accordingly to reduce those risks to patients. Those serious health issues include cardiac arrest and sudden death.

Granuflo and Naturalyte are dialysis products made by Fresenius Medical Care. In March 2012, prompted by reports of adverse events, the Food and Drug Administration issued a Class I recall of both Naturalyte and Granuflo.

The four class action lawsuits have been filed by plaintiffs Donald Thornton, Melvin Nunes, Donald Young and Armando Moreno, all in the US District Court for the District of Colorado. The lawsuits seek to represent any person treated at a DaVita Healthcare clinic with Granuflo or Naturalyte products.

Top Settlements

3-Minute Abs? Really? How are your abs, by the way? Feeling a tad underutilized, ignored even? Are they retaliating by morphing into some indistinguishable, gelatinous shape that is slowly obliterating any view you had of your feet? Yeah, you know what I’m talking about…

So do the folks at Ab Circle Pro. Problem is, their fix ain’t on the level. So the makers of Ab Circle Pro have agreed to pay as much as $25 million to settle charges of consumer fraud brought by The Federal Trade Commission (FTC). You may be familiar with the consumer fraud claims, but if not, according to the FTC, Ab Circle Pro claimed, among other things, that their device could cause rapid and substantial weight loss and that three minutes of exercise on the Ab Circle Pro was equal to 100 sit-ups. (Oh yeah baby—sign me up!)

The official short version…According to the FTC, in advertisements, the defendants promised that a three-minute workout on the Ab Circle Pro—which is a fiberglass disk with stationary handlebars and two knee rests that roll on the edge of the disk, allowing consumers to kneel and rotate side-to-side—was equivalent to doing 100 sit ups. In the infomercial, pitchwoman Jennifer Nicole Lee compared the Ab Circle Pro to a gym workout, saying, “You can either do 30 minutes of abs and cardio or just three minutes a day. The choice is yours.” The infomercial claimed that consumers using the Ab Circle Pro for three minutes a day would “melt inches and pounds,” and featured Ab Circle Pro users claiming they had lost as much as sixty pounds. Consumers buying through the infomercial typically paid $200 to $250 for the device, while the price for those buying from retailers varied more widely. I think $250 could buy a lot of situps…

And, the FTC charged all the defendants except Lee and her companies with making false and/or unsupported claims, including that using the Ab Circle Pro caused rapid or substantial weight and fat loss; resulted in loss of weight, fat, or inches in specific parts of the body, such as the abdomen, hips, buttocks, and thighs; provided fat loss and weight loss equivalent to, or better than, a much longer gym workout; and provided the same rapid and substantial weight loss that people who provided testimonials for the infomercial said they experienced. The complaint also charges the Fitness Brands, Inc. defendants with providing the means to Direct Holdings Americas, Inc. and Direct Entertainment Media Group, Inc. to deceive consumers.

The defendants are Fitness Brands, Inc., Fitness Brands International, Inc., and the two individuals who control them, Michael Casey and David Brodess; Direct Holdings Americas, Inc. and Direct Entertainment Media Group, Inc.; infomercial producer Tara Borakos and two companies she controls, Tara Productions Inc. and New U, Inc.; and Jennifer Nicole Lee and two companies she controls, JNL, Inc. and JNL Worldwide, Inc.

So, in the interests of honesty and fair play, the defendants have agreed to pay money to provide refunds to eligible consumers who bought the Ab Circle Pro. The amount of the refund will depend on the number of claims submitted and approved. To find out about making a claim visit: http://www.ftc.gov/bcp/cases/abcirclepro/9—which doesn’t necessarily have to involve getting off the couch…

Ok—that’s a wrap. See you at the bar—and make mine a diet soda this time. Happy weekend!

Week Adjourned: 3.8.13 – ADT, Hertz, Asbestos

ADT hit with early termination fee class action lawsuit to top our weekly wrap of class action lawsuits and settlements. Other big stories involve Hertz and alleged overcharging on sales tax and a major asbestos settlement.

Top Class Action Lawsuits

ADT Billing Practices Setting Off Alarms…Oh yes, my friends. This week an unfair business practices class action lawsuit was filed in the United States District Court for the Central District of California against ADT, LLC d/b/a ADT Security Services (“ADT”) on behalf of all consumers who purchased ADT home monitoring services. That’s a lot of folks, I’m betting.

The proposed class consists of two groups of consumers: (1) all current or former consumer subscribers of ADT who have been charged an early termination fee or are subject to being charged an early termination fee (also called an Early Termination Fee or Early Cancellation Fee, collectively “ETF”, and comprising the “ETF class”); and (2) all current or former consumer subscribers of ADT whose rates were increased or are subject to increase by ADT without prior notice while in the initial contract period or during subsequent contractual extensions.

This ADT class action is intended to redress ADT’s wrongful practice of imposing early termination fees, the lynchpin of ADT’s “never let them go” strategy. Early termination fees are unlawful penalties used simply as an anti-competitive device and do not compensate ADT for any true costs of breach. These penalties, which are unilaterally imposed by ADT “even when ADT fails to perform the services promised” also violate the consumer protection statutes of California and Illinois and similar laws nationwide.

The early termination penalty is extracted under circumstances which cannot be justified, when ADT has failed to perform the very services that form the basis of ADT’s obligation. The penalty is also extracted from customers who contracted with ADT to simply monitor a system that was previously installed, requiring no equipment to be installed and resulting in a windfall to ADT upon termination. By charging the early termination fee ADT gets paid for years of monitoring without doing any monitoring to earn those fees.

In addition, Plaintiffs seek redress for ADT’s pattern of unilaterally increasing alarm monitoring fees while consumers are under contract for lesser fees. These increases are implemented without adequate prior notice and without providing the appropriate and required disclosures necessary to ensure that customers consent to these increases in advance. ADT relies on small boilerplate text neither signed nor highlighted for customers to claim its “right” to unilaterally increase fees.

In addition, California residents who received restitution as a result of a settlement of similar charges against ADT made by the Contra Costa District Attorney’s Office, may still be entitled to recovery under this lawsuit.

Taxing Situation at the Car Rental…And while we’re on the subject—which happens to be the most popular category on LawyersandSettlements.com—consumer fraud—a class action lawsuit was filed against Hertz Rent-A-Car this week by customers who allege the car rental company overcharges on sales tax. Really?

Specifically, the Hertz class action lawsuit, entitled Frederick Cohen et al v. The Hertz Corporation, et al., Case No. 13-cv-01205, U.S. District Court for the Southern District of New York, claims Hertz is in violation of New York state law, as well as other states, by charging sales tax on a pre-discount rental cost, that is charging tax before customer coupons and discounts are applied. Filed by Senior Partner Alan S. Ripka, of the national law firm of Napoli Bern Ripka Shkolnik, the lawsuit contends that, if true, this allegedly unlawful practice may have cost Hertz’s customers millions of dollars.

“New York and other states have passed legislation and regulations disallowing this predatory behavior and to protect the public from this unscrupulous business practice that attempts to overcharge customers under the veil of the tax code,” the plaintiff’s lawyers said in a statement about the proposed class action lawsuit. The consumer fraud class action lawsuit names The Hertz Corporation, Hertz Global Holdings, Inc. and Hertz Investors Inc, as defendants.

The lawsuit seeks Hertz’s compliance with these laws and regulations and the return of all improperly charged costs and fees to Class Members.

Top Class Action Settlements

$35 Million Asbestos Verdict. On March 1st, a $35 million verdict was returned in an asbestos personal injury lawsuit brought by Ivo John Peraica, an asbestos removal worker who died in December from cancer caused by asbestos. The New York Supreme Court jury that heard Peraica’s case returned its verdict Friday, awarding the multi-million dollar settlement to the Croatian-born worker.

Peraica, of Queens, worked for eight years for New York-area contractors removing asbestos insulation from boilers, pumps, and other equipment. He died from complications related to mesothelioma, a cancer whose only known cause is exposure to toxic asbestos fibers.

The asbestos lawsuit claimed that Peraica’s disease was caused by years of inhaling the asbestos dust stirred up each time he stripped asbestos insulation from the equipment at his jobsites—equipment which, according to testimony, was devoid of any warnings about the dangers of asbestos.

The sole defendant at the time of the verdict—industrial products manufacturer Crane Co.—argued that other companies and even Peraica himself were responsible for his exposure to asbestos, but the jury ultimately heaped blame on the Stamford, CT-based company, saying it had acted with reckless disregard for consumers’ safety.

Peraica, a Local 12 Heat and Frost Insulators union member, worked removing asbestos for almost a decade: from the week he moved his family to New York from Croatia in 1978 until he stopped doing asbestos removal work in 1986. Peraica’s widow, Milica, survives him, as do three daughters, one of whom testified at trial to her father’s pain and suffering.

Peraica was unable to testify in person, but before he died on December 28, provided four days’ worth of deposition testimony that was read into evidence.

Ok—that’s a wrap. See you at the bar.

Week Adjourned: 3.1.13 – Walmart, Budweiser, Apple

The week’s top class action lawsuits and settlements. This week’s highlights include Wal-Mart, Budweiser and Apple.

Top Class Action Lawsuits

If at first you don’t succeed, try, try, try again…Good advice, we hope, for the women who have just filed a regional gender discrimination class action lawsuit against Wal-Mart.

Now, to be clear, Wal-Mart is not unfamiliar with the allegations, as a national gender discrimination and employment class action was filed against the world’s largest retailer only to be dismissed in 2011 by the US Supreme Court. Had that class action gone through, the class of plaintiffs would likely have been in the hundreds of thousands. But it didn’t. So—now, acting on the advice from the Supreme Court, women are filing discrimination class actions by state. The one filed this week is the fifth such regional lawsuit.

Filed in Wisconsin by one current and four former employees, the class action, entitled Ladik et al. v. Wal-Mart Stores Inc., Case No. 13-cv-00123, U.S. District Court for the Western District of Wisconsin, alleges that female employees are discriminated against when it comes to receiving compensation and promotions. The Wisconsin gender discrimination class action lawsuit is seeking to represent female workers employed by Wal-Mart since December 1998.

I’ll show my gender bias and wish them every success!

Hey Bud—this one’s for you! Oh heck yes. This week saw Anheuser Busch, the brewer of the self-proclaimed King of Beers—Budweiser —get hit with several consumer fraud class action lawsuits alleging that it waters down its Budweiser, Michelob and other top-selling beers. Tsk,Tsk. Do not go messing with people’s alcohol content gentlemen.

Filed in Pennsylvania, California and other states, the Budweiser lawsuits allege that consumers have been sold beer that contains less alcohol than advertised on the labels.

Specifically, the complaints allege that Anheuser Busch employs some of the most sophisticated process control technology in the world to precisely monitor the alcohol content at the final stages of production, and then adds additional water to produce beers with significantly lower alcohol content than is represented on the product labels, and depriving consumers of the value they paid for.

The lawsuits are based on information provided by former employees at the company’s 13 US breweries, some in high-level plant positions, according to lead lawyer Josh Boxer (MSN.com). “Our information comes from former employees at Anheuser-Busch, who have informed us that as a matter of corporate practice, all of their products mentioned (in the lawsuit) are watered down,” Boxer told MSN.com “It’s a simple cost-saving measure, and it’s very significant.”

The complaint alleges: “There are no impediments—economic, practical or legal—to AB accurately labeling its products to reflect their true alcohol content. Nevertheless, AB uniformly misrepresents and overstates that content.”

Nina Giampaoli who filed the California-based lawsuit, said “I think it’s wrong for huge corporations to lie to their loyal customers—I really feel cheated. No matter what the product is, people should be able to rely on the information companies put on their labels.”

I’ll drink to that!

Top Settlements

Nothin’ like a kid in an Apple—er, candy—store. This one is for all you parents out there who woke up on morning to find your credit card balance had magically grown—seemingly on its own. But wait—is that the patter of little feet I hear? Could it be the kids buying in-game extras from the Apple mobile apps store that’s the root of the mystery? You betcha!

And this week, Apple magnanimously agreed to pony up some gift cards, no total value given, by the way, in settlement of the consumer fraud class action it’s facing over what could only be described as unfair business practices.

If the Apple apps settlement is approved, parents would receive $5 iTunes gift cards. Wow—pack up the kids, you’re going on vacation!

Ok—here’s the skinny. The lawsuit is brought by parents who allege their children downloaded free games from the Apple mobile app store and then went on to buy in-game extras—effectively charging the cost of the games to their parents—without their parents’ knowledge. In some cases these charges ran into the hundreds of dollars. Yup.

If approved, Apple would build a website for people who wish to make a claim. As well the tech-giant would send e-mail notifications to some 23 million customers. OK, that ain’t chump change.

According to a report by CNN.com parents whose children incurred larger costs and who want more than $5 gift card, must provide proof that a larger amount was spent by their children during any 45-day period. Those who can show more than $30 in purchases may choose a cash refund instead of an Apple credit. Purchases made until the date of the settlement would be eligible for refunds, CNN.com reported.

Bad Apple! What kind of example does that set?

Ok—See you at the bar and Happy Friday!

Week Adjourned: 2.22.13 – Carnival Cruises, Merrill Lynch, Toyota

Carnival gets sued, Toyota pays up, and Merrill Lynch settles in this week’s edition of Week Adjourned–the weekly wrap of top class action lawsuits and settlements for the week ending February 22, 2013.

Top Class Action Lawsuits

“The Fun Ships?” Fun for who? While everyone jokes about the trip from hell—who hasn’t had a bad holiday experience—this time it really happened. So bring on the lawsuits. Possibly the first class action out the gate was filed against Carnival this week, by Miami based maritime law firm Lipcon, Margulies, Alsina & Winkleman, PA. on behalf of passengers who were onboard the Carnival Triumph.

According to the Carnival class action lawsuit, the conditions Carnival Triumph passengers were subjected to onboard after the vessel was impaled from a fire were hazardous to their health. I would have said that was putting it mildly?

Michael A. Winkleman, an experienced maritime lawyer with the Lipcon firm, discussed the fire onboard the Triumph on a recent interview on Fox Network’s ‘Fox & Friends’, detailing the conditions passengers had to suffer through. Mr. Winkleman also appeared on the network’s ‘America Live with Megyn Kelly’, ‘Justice with Judge Jeanine’ and ‘The O’Reilly Factor’ shows. Lipcon’s Jason R. Margulies was interviewed by CNN regarding the situation.

According to the firm, cruise lines are responsible for the safety of everyone on board, including passengers and crew members, which entails making sure illness and disease don’t spread among those aboard a vessel. When an incident onboard a cruise vessel or a boat accident does take place, whether it is a medical complication resulting from disease, an injury related to a slip and fall, or a passenger going overboard, the line may be found at least partially responsible for any injuries or fatalities.

Apart from the shipboard conditions caused by the cruise ship fire, Lipcon also points out that Carnival’s decision to tow the Triumph to Mobile, instead of the closer port of Progreso, Mexico, caused passengers to endure more time onboard the disabled vessel than was necessary, prolonging their exposure to disease, accidents and trauma.

Attorney Margulies said “an evacuation in Progreso would have allowed Carnival to contain its passengers’ suffering and would have enabled Carnival, from civilization, to systematically coordinate the passengers’ transport back to the United States.” Maritime lawyer Margulies further stated that “If investigations uncover that either the fire itself or the delay in docking may have contributed to any illnesses or injuries onboard the Carnival Triumph, this can be considered a violation of passenger safety.”

Unfortunately, some cruise lines, including Carnival, have stipulations on their ticket contracts that make it difficult for passengers and crewmembers to obtain their rightful benefits, including medical care and money damages. Because Carnival in particular is not a U.S. corporation, Mr. Winkleman explained to Fox News that the line is “not subject to U.S. taxes or labor laws,” a factor which prevents victims from making a full recovery following cruise ship accidents and injuries.

Although Carnival released a statement on its website explaining Triumph passengers will be compensated with a “full refund of the cruise and transportation expenses, a future cruise credit equal to the amount paid for the voyage, reimbursement of all shipboard purchases made during the voyage, with the exception of casino, gift shop and artwork purchases, and further compensation of $500 per person,” Mr. Winkleman said passengers do not have to settle for this meager compensation and that the firm has found sufficient evidence providing grounds for Triumph victims to file a proposed class action lawsuit against Carnival.

My question—what about the crew—conditions would have been just as bad for them—if not worse? Can they sue?

Top Settlements

Merrill Lynch OT Settlement. Former and current Merrill Lynch employees will be celebrating this week, after having an agreement on a $12 million settlement in their unpaid overtime class action. The Merrill Lynch lawsuit was brought by employees who provided support services to brokers, and still has to receive final court approval—but it looks destined for a happy ending.

I would imagine support staff to brokers in banks and financial institutions the world over could relate to claims in this lawsuit. Filed in June 2011, The unpaid overtime class action alleges Merrill Lynch client associates were paid overtime based on an incorrect and low regular rate of pay and that Merrill failed to properly record and account for all overtime hours they worked. Client associates typically handle paperwork for brokers, and some can assist with order entries.

The $12 million fund will provide financial recovery for client associates who worked for Merrill Lynch between 2010 and 2012. The time period is longer for client associates who were employed in California, New York, Maryland and Washington. Maybe the start of a trend—I’m betting the support staff aren’t pulling down seven figure salaries.

Is this Déjà vu? Some 20 million current and former owners of Toyota vehicles may share in a $1 billion settlement of an Toyota Unintended Acceleration class action lawsuit, if the proposed settlement received final court approval.

The Toyota settlement would resolve a series of class action lawsuits, consolidated in 2010 as In Re: Toyota Motor Corp. Unintended Acceleration Marketing, Sales Practices and Products Liability Litigation.

In the consolidated action, plaintiffs claimed that certain Toyota, Scion and Lexus vehicles equipped with electronic throttle control systems (“ETCS”) are defective and can experience acceleration that is unintended by the driver. This alleged defect has resulted in a drop in the value of the vehicles. Consequently, the plaintiffs claim breach of warranties, unjust enrichment, and violations of various state laws.

Short list of must knows?

Eligible members of the class include any person, entity or organization who, at any time before December 28, 2012, owned, purchased, leased and/or insured for residual value one several models of Toyota, Lexus and Scion vehicles.

If you are a class member, you may be entitled to one or more of the following:

A cash payment for alleged loss upon certain disposition of a Subject Vehicle during the period from September 1, 2009 and December 31, 2010 or upon early lease termination following an alleged unintended acceleration event that you reported.
Installation of a brake override system (BOS) in certain Subject Vehicles at no charge.
A cash payment if your Subject Vehicle is not a hybrid and is not eligible for a BOS.
Participation in a Customer Support Program.
Other settlement benefits.

For complete information on your rights in the Toyota unintended acceleration class action lawsuit settlement, visit: ToyotaELSettlement.com.

Ok—that’s this week done and dusted. See you at the bar and Happy Friday!

Week Adjourned: 2.15.13 – Gender Discrimination, Motrin, Zetia & Vytorin

Motrin, Zetia, Vytorin and gender discrimination are top stories in this week’s Weed Adjorned wrap on top class action lawsuits and settlements for the week ending February 15, 2013.

Top Class Action Lawsuits

Gender discrimination? Sorry—what year is this? Maybe the year Daiichi Sankyo gets nailed for the unlawful practice, if the allegations are true…Allegations made by six current and former female pharmaceutical sales professionals who filed a $100 million class and collective action gender discrimination lawsuit against the Japanese Pharmaceutical company.

Filed in the US District Court for the Northern District of California, these women seek to end pervasive gender discrimination in their workplace on behalf of themselves and a class of several hundred female Daiichi Sankyo sales professionals who have worked for the company in the United States.

The short version, like we don’t know it chapter and verse by now, is that Daiichi Sankyo pays female sales employees less than male employees for doing the same work; promotes or advances female sales employees at a slower rate than male sales employees; treats pregnant employees and working mothers of young children adversely compared to non-pregnant employees, male employees, or non-caregivers; and subjects women to other discriminatory terms and conditions of employment.

According to the Daiichi Sankyo lawsuit, a discrete group of predominantly male Daiichi executives and senior sales managers keep a tight rein on employment decisions, including decisions regarding sales employees’ compensation, advancement, and other terms and conditions of employment. Through this male dominated leadership structure, the Company has approved and implemented policies, practices and decisions that have systemically discriminated against female employees. No, this is not a Mad Men script. This, sadly, is real life.

Just in case there are any doubts as the validity of the allegations, the Plaintiffs cite Daiichi Sankyo’s violations of Title VII of the Civil Rights Act of 1964 and the federal Equal Pay Act of 1963, as well as the California Fair Employment and Housing Act, the California Equal Pay Act and the California Unfair Business Practices Act in today’s Complaint. Umm… 1963—1964 the laws changed and yet we’re still fighting for gender equality in 2013. No comment.

Top Settlements

Major Motrin Award. A landmark award this week—but brace yourself for the backstory. Boston, MA was the scene of a personal injury lawsuit against Johnson & Johnson (J&J) and its subsidiary, McNeil-PPC Inc, that ended this week with the jury awarding $63 million in damages to the Reckis family who brought the lawsuit involving Motrin.

The two pharmaceutical companies were ordered to pay 16-year old Samantha Reckis $50 million in compensatory damages, and her parents $6.5 million each.

What happened? Samantha suffered toxic epidermal necrolysis (TEN), a late stage of Stevens Johnson Syndrome (SJS), as a result of taking Motrin brand ibuprofen. Just seven-years old at the time, Samantha was given Motrin brand ibuprofen by her parents, and shortly thereafter began presenting with symptoms of TEN, which resulted in her losing 90 percent of her skin and her eyesight.

Samantha also suffered brain damage involving her short-term memory, and surgeons had to drill through her skull to relieve some pressure on the brain, the Reckis’ attorney noted. Additionally, Samantha suffered damage to her respiratory system, in which her lungs were burnt, leaving her with only 20 percent lung capacity.

Samantha had taken Motrin previously with no side effects. However, in 2003, the day after Thanksgiving, her parents began giving her the medication to reduce fever. The resulting toxic epidermal necrolysis, which can be fatal, causing inflammation of the mucus membranes and eyes and is marked by a rash that burns off the outer layer of skin, had her physicians puzzled. Samantha suffered inflammation of her throat, mouth, eyes, esophagus, intestinal tract, respiratory system and reproductive system. Her doctors were forced to put her in a medically induced coma.

The family filed the lawsuit in 2007. The trial took five weeks. The Reckis’ claimed that Samantha was blinded by Motrin and alleged that Johnson & Johnson failed to warn consumers that the drug could cause life-threatening reactions. Another positive, in addition to the award, is that while Samantha has to work twice as hard as her fellow classmates, she is in school and is an honor student, demonstrating a remarkable spirit.

Zetia & Vytorin False Statements Settlement. Here’s another record-breaking settlement from the world of pharmaceuticals—this time it’s a securities class action settlement. Actually, make that two securities settlements totaling $688 million. Whoppa! The securities class actions are pending against Merck & Co. Inc. (“Merck”), Schering-Plough Corporation (“Schering”), Merck/Schering-Plough Pharmaceuticals, certain of the Companies’ directors and officers, and the underwriters of a 2007 Schering stock offering over allegations the companies made false and misleading statements about results from a clinical trial called “ENHANCE” involving the anti-cholesterol drugs Zetia and Vytorin.

The actions, currently pending in the US District Court for the District of New Jersey before Judge Dennis M. Cavanaugh, are In re Schering-Plough Corporation/ENHANCE Securities Litigation, Master File No. 08-397, which settled for $473 million; and In re Merck & Co., Inc. Vytorin/Zetia Securities Litigation, Master File No. 08-2177, which settled for $215 million.

The two class actions stem from claims that Merck and Schering (which merged in November 2009) artificially inflated their securities by concealing material information and making false and misleading statements regarding the blockbuster anti-cholesterol drugs Zetia and Vytorin.

Namely, the lead plaintiffs alleged that even though the Defendants knew that a clinical trial of Vytorin, called “ENHANCE,” demonstrated that Vytorin (a combination of Zetia and a generic statin medication) was no more effective than the cheaper, generic statin drug at reducing artery thickness, the Companies nonetheless championed the “benefits” of the drugs, attracting billions of dollars of capital in the process. Yielding to public pressure to release the results of the ENHANCE trial, Lead Plaintiffs allege that the companies reluctantly announced that the cholesterol drugs showed “no statistically significant difference” in plaque buildup, and that news of these negative results and their related consequences caused sharp declines in the value of the companies’ securities, resulting in significant losses to investors.

The combined $688 million in settlements is the second largest securities class action settlement in the Third Circuit, among the top 25 securities class action settlements of all time, and among the ten largest recoveries in a securities class action not involving a restatement.

So—the moral of the story? You tell a Whoppa, you pay a Whoppa—quid pro quo baby!

See you at the bar—I know who’s buying…

Week Adjourned: 2.8.13 – Hipster, YoPlus, Ritz-Carlton

Nemo’s coming and your top class action lawsuit & settlement wrap for the week is now live! Latest class action lawsuits for the week ending February 8, 2013 include Hipster, YoPlus and the Ritz-Carlton

Top Class Action Lawsuits

Hipster ain’t so hip after all…at least according to the plaintiffs who have filed an in Internet privacy class action lawsuit against the photo-sharing App. The Hipster lawsuit alleges the company illegally obtained iPhone users’ personal information and contact lists without their permission.

The internet privacy lawsuit, entitled Francisco Espitia v. Hipster Inc., Case No. 13-cv-00432 in the U.S. District Court for the Northern District of California, alleges that a function of the Hipster App found and retrieved subscribers’ personal contacts and other highly sensitive information, including passwords and geo-location, and then transferred the data over unencrypted, publicly accessible data channels to Hipster’s third-party servers. (Maybe they should rename the App “Fetch”).

Specifically, the lawsuit states: “These actions involved the deliberate and intentional circumvention of technical measures within the mobile computing device in order to bypass the technical and code based barriers, including the plaintiffs’ and class members’ privacy settings which were intended to limit access by anyone other than the owner of the device.” Having transferred the users’ contact address data to its remote computing service, Hipster then allegedly proceeded to access and use such data without authorization or consent, according to the lawsuit.

The laundry list? Violations of the Electronic Communications Privacy Act, the Stored Communications Act, the California Computer Crime Law, and the California Invasion of Privacy Act, among other things.

The Hipster lawsuit seeks to represent all US residents that downloaded the Hipster App to their mobile phones from January 1, 2011 to the present.

Very uncool.

Top Settlements

Yo Dude! You may be eligible to share in the YoPlus $8.5 million settlement agreed this week by General Mills. If approved, the settlement would end a consumer fraud class action lawsuit alleging the food manufacturer misrepresented the digestive health benefits of its YoPlus probiotic yogurt. Well, they certainly wouldn’t be the first, and likely, they won’t be the last.

Filed in 2010, the consumer fraud class action lawsuit, entitled J Johnson v. General Mills Inc. et al., Case No. 10-cv-00061, U.S. District Court for the Central District of California, claims that consumers who purchased the YoPlus yogurt products were deceived into paying more for them as a result of General Mills misleading advertising.

In their motion to accept the settlement, the plaintiffs noted “Considering the strengths and weakness of this case, including the amount of potential damages available to the class after trial here and in other jurisdictions around the United States, the settlement represents an excellent result and includes relief for purchasers of YoPlus on a nationwide basis.”

Under the terms of the settlement, consumers who purchased YoPlus will be entitled to $4 per person for each unit they purchased. Not bad, really.

Putting on the Ritz? Em, maybe not. More like this one’s on the Ritz…The Ritz-Carlton that is. This week, the famous hotel chain agreed to pay $2 million in settlement of the Ritz-Carlton overtime class action lawsuit filed by 1,500 (yup—that’s the right number of zeros) current and former employees in California who allege they were not paid overtime wages.

Bottom line—eligible plaintiffs in the California overtime employment class action are for those who either work or worked at Ritz-Carlton hotels in San Francisco, Half Moon Bay and Lake Tahoe at any time from November 2007 on.

And just in case you need the details—the settlement, when approved, will resolve Lambson v. Marriott International, Inc. et al, Case No. 11-cv-06669, U.S. District Court for the Northern District of California, and allegations the Ritz Carlton, a subsidiary of Marriott International, violated California state wage and hour laws.

So—see you at the bar—who’s buying?

Week Adjourned: 1.25.13 – Lance Armstrong, Subway, Southwest Airlines

Top class action lawsuits and settlements of the week, for the week ending January 25, 2013.

Top Class Action Lawsuits

File Under “Fiction”. You would pretty much have to be living on the dark side of the moon not to have heard of the consumer fraud class action lawsuit filed against the publishers of Lance Armstrong’s book “It’s Not About the Bike.” Indeed it’s not.

Filed following the interview/confession with Oprah Winfrey earlier this week, the lawsuit alleges the publishers sold Lance Armstrong’s latest book as fact, when it was fiction. Quelle Surprise!

And, the lawsuit, filed this week in federal court in California, also mentions Armstrong’s other book, “Every Second Counts,” and accuses the cyclist and his publishers of fraud and false advertising.

The lawsuit, filed by Rob Stutzman in federal court in California, also mentions Armstrong’s other book “Every Second Counts, and alleges Armstrong and his publishers are guilty of consumer fraud. Specifically, the lawsuit states “At that time, Stutzman thanked Defandant Armstrong for writing his book and told him it was very inspiring and that he recommended it to friends who were fighting cancer.” Stutzman contends that had he and others similarly situated known Armstrong’s accounts were lies, they would not have purchased the book, or have enjoyed it less.

“Throughout the book, Defendant Armstrong repeatedly denies that he ever used banned substances before or during his professional cycling career,” the lawsuit states. The lawsuit also states that the plaintiffs purchased the book “based upon the false belief that they were true and honest works of nonfiction when, in fact, Defendants knew or should have known that these books were works of fiction.” Well, everyone likes a good story, and this is certainly no exception.

Is Subway selling a Whopper? …instead of a Footlong? We’ll have to wait and see… A consumer fraud class action lawsuit was filed this week against the sandwich chain Subway, alleging it advertises the $5 Footlong sandwiches when they are not a foot long.

The Subway Footlong lawsuit, Pendrak & Farley v. Subway Sandwich Shops Inc., et al., Superior Court for the State of New Jersey, claims the famous sandwiches actually measure between 11-11.5 inches, instead of 12 inches as advertised. (no comment).

The lawsuit further claims that Subway is aware its Footlong sub sandwich is not 12 inches, because sandwich prices are set at the corporate level then sent down the line to the individual franchises. Consequently, Subway is purposefully defrauding its customers by selling so-called “$5 Footlongs,” according to the lawsuit.

Top Settlements

This round’s on Southwest! Yes, indeed—Southwest Airlines reached a tentative settlement of a pending class action lawsuit over drink vouchers. Included in this Settlement are Southwest customers who received a drink coupon with the purchase of a Business Select ticket prior to August 1, 2010, and did not redeem the drink coupon.

Filed in 2011, Southwest Airlines class action lawsuit plaintiffs, Adam Levitt (an attorney himself) and Herbert Malone, alleged the airline’s policy changes around its drink vouchers, which became effective after August 1, 2010, amounted to a breach of contract and made the coupons worthless. The policy change stipulated that while the drink vouchers had no expiration date, they could only be used on the dates voucher holders were traveling. The vouchers were issued to passengers for alcoholic drinks.

Southwest Airlines drinks vouchers changes were brought in because, the airline claimed, passengers were photocopying them to get free drinks.

The settlement includes Business Select passengers who were issued vouchers before August 1, 2010. Based on Southwest’s charges of $5 per alcoholic drink, the settlement may cost the airline as much as $29 million, with some 5.8 million vouchers up for redemption. The final fairness hearing is set for May, 2013.

The proposed settlement includes damages for Class Members who received Southwest drink coupons through the purchase of a Business Select ticket prior to August 1, 2010, but did not redeem those drink coupons for a free drink. Eligible class members must file a claim before September 2, 2013.

So—see you at the bar—and don’t forget your voucher!